Raise the overall price of electricity to reflect the cost of service after taking into account any capital cost subsidies for extending service to rural areas. Also, incorporate other best practices into the distribution sector to promote rural electrification. Ethiopia’s low electricity prices cause problems for rural electrification as a business. The electricity price for rural households is extremely low, making it difficult for EEPCo to recover its costs. The price for those consuming 50 kW or less per month is about US$0.02 per kWh. Even at the level of 400 kWh, the price of electricity is only $0.03 per kWh. This means that the rural electrification program loses money on every new customer. Consumers have little incentive to conserve electricity, and EEPCo has little incentive to provide the necessary operation and maintenance for rural lines. In the future, this will likely cause a decline in the quality of service.

Have simple and effective mechanisms for targeting the poor. In this GPOBA program, targeting was achieved by combining geographic criteria with self-selection methods. The targeting was consistent with the Ethiopian government’s policy of providing equity and broad geographical coverage for its rural electrification access program.

Facilitate house wiring in both standard and substandard housing. One major issue identified in this study was EEPCo’s policy of connecting only those homes made of concrete, which frustrated many poorer households who were ineligible for electricity service. They, in turn, decided to string wires to a neighboring house with a legitimate meter. Most of the problems involving indirect household connections could be avoided by developing standard waterproof ready boards for installation in houses constructed of substandard materials.

The energy sector of Ethiopia continues to largely rely on traditional biomass energy due to limited access to modern energy sources to meet growing demand. Long-term energy demand forecasting is essential to guide the country's plans to expand the energy supply system. This study provides a general overview of Ethiopia's current energy demand and forecasts sector-wise energy demand out to 2030 for alternative policy scenarios using the Long-range Energy Alternative Planning (LEAP) model. The reference scenario assumes a continuation of recent energy consumption trends and takes account of current energy and economic dynamics. Three alternative scenarios on improved cookstoves, efficient lighting, and universal electrification scenario were identified as key priorities of the government of Ethiopia and modeled. Results from the model can assist energy planners in ensuring that the country's capacity for supply meets projected growth in demand for energy. They also shed light on the tradeoffs implicit in alternative policy priorities and investments in terms of economic development and environmental sustainability. Most importantly, the results suggest that alternative investments can conserve energy, improve environmental sustainability, enhance energy equity and improve the country's development indicators.

The Authority is preparing to introduce a minimum energy performance standard for electrical motors in a bid to reduce power consumption. The Authority’s Energy Efficiency Conservation Department is conducting a study to identify the minimum standard for electric motor efficiencies manufacturers must meet before they can be put to use in the country.

At a cost of 20 million Br, the study was initiated in July and is expected to be produced in three phases, taking up to three years to finalise. In the first phase of the project, which is expected to take about a year, a minimum standard for energy use will be identified. The next two phases will encompass discussing the result of the study with stakeholders, conducting awareness creation programs and taking steps to reduce the import of substandard motors.

Ethiopia has increased its electricity generation capacity 11-fold during the last 27 years, says an Ethiopian official. Azeb Asnake, CEO of Ethiopian Electric Power (EEP), said Ethiopia has managed to increase its electricity generation from 380 Mega Watts (MW) in 1991 to around 4,300 MW currently, reported state affiliated media outlet Radio Fana. She also said EEP has managed to increase its customer numbers from 600,000 in 1991 to around 2.8 million people in 2018, while an additional 8,000 rural towns have become beneficiaries of electricity during the same period. "Ethiopia is constructing several energy projects, including the 6,450 MW Grand Ethiopian Renaissance Dam (GERD), which in total can generate about 9,000 MW of additional energy," said Asnake.